labor burden

The five concepts of labor costs. As AV integrators focus on expanding their services business, there is an extra emphasis on labor. Navigate’s David McNutt outlines the major concepts around labor costs, and how to manage them efficiently. What are the differences between direct vs. indirect vs. overhead labor costs? What are fully burdened labor costs? How does this impact profitability?

If you hear the term “Labor Burden”, and you want to glaze over a bit, don’t. Understanding Labor Burden, as applied to the direct hourly cost of your billable labor (Technicians, Engineers, Programmers, Project Managers, etc.), may just change your business. It is a crucial concept in running a profitable